Euro Resurgent

2 May, 2017

Nakhil Mahra

Last week we saw the GBP rally against the USD, with questions over Trumps policies and some questionable data from across the pond saw the GBPUSD hit a six month high and present some excellent buying opportunities for USD buyers. However this can quickly turn and see the USD strengthen with a busy week ahead planned. Positive data can see the rate quickly spiral down so don’t miss out on this opportunity.

As the USD faltered, Euro was resurgent with Macron a heavy favourite against Le Penn in the French elections. on Friday we saw the biggest jump between GBPEUR compared to the rest of the week, with questions over the ECB thinking about quantitive easing. with the focus heavily back on the French elections this week and final round of voting fast approaching the markets are expected to yo yo between now and then. with some of the best Euro buying opportunities present currently and favourite Macron expected to win these rates may not last too long be sure to take advantage.

The week ahead is extremely busy, with data across the content. With manufacturing data from both the UK and Europe expected on Tuesday as well as unemployment from Europe, we can see the Euro strengthen should results go against GBP. with unemployment rate from USA later in the week, the gains made against the USD last week can be short lived should they post positive data.

GBP Manufacturing PMI
Manufacturing from Italy, France, Germany
EUR unemployment rate

GBP Construction PMI
German 10 year bond auction
Spaning/German unemployment change
US Financial services PMI
US Non farm employment change
Crude oil inventories
Federal Fund rate

AUD Trade balance
EUR Final services PMI
GBP Mortgage approvals
Net Lending to individuals
CAD trade balance
USD unemployment claims
USD Trade balance
ECB President speaks

NZD Inflation expectation
AUD RBA monetary policy statement
CAD unemployment rate
USD Unemployment rate

Which such a busy week ahead and markets expected to be volatile stay in touch with your CI account manager to discuss your options before the rates go again you.